1. The library is in a file called library1.db. You can locate it using the config dialog in the libprs500 GUI (which allows you to change its location as well. It should work from a NFS store, as long as you are careful to not concurrently access it (NFS doesn't support file locking). You should look into sshfs instead.
2. Click the arrow next to the edit metadata button and use the bulk convert dialog
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